UNITED vs ANA Which Is Superior?

United Airlines Holdings Inc. (UAL) and All Nippon Airways Co. Ltd. (ANA) are two major players in the airline industry, with both companies having a significant presence in the global market. United Airlines is one of the largest airlines in the United States, while ANA is the largest airline in Japan. Both companies have faced challenges in recent years, with the COVID-19 pandemic severely impacting air travel. Investors looking to compare United and ANA stocks should consider factors such as financial performance, market share, and future growth prospects.

UNITED or ANA?

When comparing UNITED and ANA, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between UNITED and ANA.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. UNITED has a dividend yield of 3.0%, while ANA has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% year and a payout ratio of 0.00%. On the other hand, ANA reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with UNITED P/E ratio at 51.38 and ANA's P/E ratio at 2.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.40 while ANA's P/B ratio is 0.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while ANA's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and ANA's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥798.00 for UNITED and $3.87 for ANA. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. ANA's prices fluctuated between $3.51 and $4.62, with a yearly change of 31.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.